Cost of living compare
Houston vs Chicago cost of living
Houston vs Chicago cost of living, compared metric by metric: BEA regional price parity, HUD rent, USDA food, energy, and state and local taxes. Each row keeps its own source grain and vintage — there is no single blended “cost of living score,” because these measures are published at different geographic grains.
6% more income is needed for a family of four (2 adults, 2 children) to break even in Chicago than in Houston
Chicago needs $96,928/yr vs $91,197/yr in Houston
CEX 2024 · FMR FY2026 · USDA 2025 · RPP 2024 · TY2025 · NDCP 2022 (CPI-inflated to 2026-M04)
How much does a family of four need in Houston vs Chicago?
A family of four needs about $91,197 a year in Houston and $96,928 a year in Chicago to break even. The stacked bars show where each monthly budget goes; the table below gives the exact split and the difference.
| Component | Houston | Chicago | Houston − Chicago |
|---|---|---|---|
| Housing | $1,840 | $1,930 | −$90 |
| Childcare | $1,719 | $1,447 | +$273 |
| Taxes | $787 | $1,269 | −$482 |
| Food | $1,073 | $1,127 | −$54 |
| Transportation | $1,117 | $1,190 | −$73 |
| Everything else | $1,064 | $1,114 | −$51 |
| Total per month | $7,600 | $8,077 | −$478 |
Household Budget Benchmark, family of four (2 adults, 2 children), 3-bedroom. Housing uses HUD Fair Market Rent (ZIP SAFMR where available); other rows are federal series adjusted by state-grain BEA price parities. CEX 2024 · FMR FY2026 · USDA 2025 · RPP 2024 · TY2025 · NDCP 2022 (CPI-inflated to 2026-M04).
Which city has higher prices, Houston or Chicago?
BEA Regional Price Parities put overall prices at 98.6 in Houston and 103.6 in Chicago, where the U.S. average is 100. RPP is a regional index shown at each city’s BEA grain, not a city-precise price tag.
| RPP component | Houston | Chicago | Houston − Chicago |
|---|---|---|---|
| All items | 98.6 | 103.6 | −5 |
| Goods | 100.6 | 107.3 | −6.6 |
| Rents | 104.5 | 112.0 | −7.5 |
| Utilities | 95.3 | 83.6 | +11.7 |
| Other services | 95.6 | 100.5 | −4.9 |
Houston: Houston-Pasadena-The Woodlands, TX metro area · reference year 2024. Chicago: Chicago-Naperville-Elgin, IL-IN metro area · reference year 2024.
How much is rent in Houston vs Chicago?
HUD sets the 2-bedroom Fair Market Rent at $1,573 in Houston and $1,781 in Chicago for HUD fiscal year 2026.
| Bedrooms | Houston | Chicago | Houston − Chicago |
|---|---|---|---|
| 1-BR FMR | $1,323 | $1,581 | −$258 |
| 2-BR FMR | $1,573 | $1,781 | −$208 |
| 3-BR FMR | $2,116 | $2,294 | −$178 |
Houston: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area. Chicago: Chicago-Joliet-Naperville, IL HUD Metro FMR Area. HUD FY2026 40th-percentile gross rents.
Are taxes higher in Houston or Chicago?
Combined state and local sales tax is about 8.2% in Texas and 8.89% in Illinois. These are state and local figures — the two cities may sit in the same state.
| Measure | Houston (TX) | Chicago (IL) | Difference |
|---|---|---|---|
| Combined sales tax rate | 8.2% | 8.89% | −0.7 pts |
| Top state income tax rate | None | 4.95% | −5 pts |
| State & local taxes per capita | $5,434 | $8,199 | −$2,765 |
Sales & income tax rates: state statutes / DOR schedules, TY2025. Per-capita burden: Census Annual Survey of State & Local Government Finances, FY2022. State grain.
Are utilities and gas cheaper in Houston or Chicago?
Residential electricity runs about 15.4¢/kWh in Texas and 17.8¢/kWh in Illinois. Energy prices are state or PADD-region grain, not city-specific.
| Measure | Houston (TX) | Chicago (IL) | Difference |
|---|---|---|---|
| Residential electricity | 15.4¢/kWh | 17.8¢/kWh | −2.4 |
| Residential natural gas | 18.56 $/Mcf | 11.4 $/Mcf | +7.16 |
| Retail gasoline | 4.05 $/gal | 4.49 $/gal | −0.44 |
Electricity & natural gas: EIA state-grain residential prices. Gasoline: EIA PADD 3 (Gulf Coast) vs PADD 2 (Midwest) (PADD-region grain).
What does groceries cost in Houston vs Chicago?
A USDA Low-Cost food plan for a family of four is about $1,088 a month nationally; the plan value is a national figure, while local price differences show up through the RPP-adjusted budget above.
| USDA plan (family of 4, monthly) | Houston | Chicago |
|---|---|---|
| Thrifty plan | $996 | $996 |
| Low-cost plan | $1,088 | $1,088 |
| Moderate plan | $1,341 | $1,341 |
USDA Cost of Food Plans, July 2025. National grain — identical for every city; the family budget applies each state’s RPP for local context.
Go deeper on Houston and Chicago
Sources
Every figure above traces to an official federal or state source, shown with its vintage and geographic grain. Cost-of-living measures are not combined into one composite score. See the cost-of-living methodology.